Re: Who Can Help?? - Posted by Brent_IL
Posted by Brent_IL on February 13, 2001 at 19:02:40:
Not every no-money-down deal should be done.
From the seller’s point of view, they are giving up $500.00 of equity (based solely upon their opinion) to eliminate $570.00 a month. Good for them.
Does the $570.00 include the lot rental? It seems to be very high for a ten-year loan in this range. Is there an existing sales or rental market for this kind of trailer that allows you to charge even more?
The first thing I would do is to refinance the $8,000.00. The payment on a 120 / 8000 / 18% loan is $144.15. You won?t need to pay as much, so it may be possible for your renter/buyer to pay less, while still maintaining your profit margins.
You may be able to approach the park management about assuming personal responsibility for your tenants/buyers by substituting your credit for theirs. This transfers the risk to you. In exchange, you get whatever profit is available.
I can see the benefits to the seller, and the park management. I?m less clear about the benefit to you to do this deal.